Through the acquisition, which is expected to be closed in H1 2025, Synopsys intends to combine its semiconductor electronic design automation with Ansys' simulation and analysis capabilities to offer customers a comprehensive, robust, and system-focused approach to innovation
Ansys to be acquired by Synopsys in $35bn deal. (Credit: Dan Hart, ANSYS, Inc./Wikipedia.org)
Synopsys, an American electronic design automation company, has agreed to acquire engineering simulation and 3D design software firm Ansys in a deal worth around $35bn.
The cash and stock deal is aimed at creating a silicon to systems design solutions major.
According to the terms of the definitive agreement, shareholders of the Nasdaq-listed Ansys will receive $197 in cash and 0.345 shares of Synopsys common stock as consideration.
Synopsys is also listed on Nasdaq.
Through the acquisition, Synopsys plans to combine its semiconductor electronic design automation (EDA) with Ansys’ capabilities in simulation and analysis to offer customers a comprehensive, robust, and system-focused approach to innovation.
Besides, the deal will improve Synopsys’ silicon to systems strategy spanning the core EDA segment and extending into highly promising adjacent growth areas including automotive, aerospace, and industrial.
Furthermore, the merged entity is estimated to achieve run-rate cost synergies of nearly $400m by year three after closing of the deal and about the same amount in the form of run-rate revenue synergies by year four post-closing.
Synopsys executive chair and founder Aart de Geus said: “Joining forces with Ansys, a company we know well from our long-standing partnership, is the latest example of how Synopsys remains at the forefront.
“Our Board and management team carefully evaluated our top strategic options to lead and win in this fast-growing new wave of electronics and system design. The technology-broadening team-up with Ansys is an ideal, value-enhancing step for our company, our shareholders, and the innovative customers we serve.”
Both parties have had a growing partnership since 2017.
Following the closing of the proposed deal, Ansys’ shareholders will hold approximately 16.5% of the combined company on a pro forma basis.
Ansys president and CEO Ajei Gopal said: “This transformative combination brings together each company’s highly complementary capabilities to meet the evolving needs of today’s engineers and give them unprecedented insight into the performance of their products.
“Ansys has a strong foundation, as demonstrated by preliminary annual contract value (“ACV”) results for Q4 that are expected to exceed the high end of our guidance, and I am confident that building on our partnership with Synopsys will position us well to deliver even greater value for our customers, partners and shareholders.”
Subject to approval by Ansys’ shareholders, regulatory approvals, and other customary conditions, the deal is expected to be closed in H1 2025.
Cleary Gottlieb Steen & Hamilton is serving as legal adviser to Synopsys while Evercore is the financial adviser.
For Ansys, Qatalyst Partners is acting as financial adviser while Skadden, Arps, Slate, Meagher & Flom and Goodwin Procter are its legal advisers.